Trust / Savings Account for Godchild

RichCowell

Hi all,

I've just had the honour of being asked to be the godfather of my friend's baby.

I'd like to set up some sort of savings account that I can pay into monthly, but not sure what the best option is for this sort of thing - I'd thought it was a trust, but can't really find any info about them for people who aren't relatives.

I want it to be hassle-free, I hate paperwork and anything involving managing finances, so I certainly don't want to commit to something for 21/25 years if it's going to involve a lot of work!

Can anyone suggest the best way of doing this?

Thanks,

Rick

RichCowell

Bumped to get it above all the spam...

xylophone

If your friend were to set up a JISA for his child, you could contribute- you might just set up a standing order to the
JISA from your own bank account for a certain amount each month?

https://www.gov.uk/junior-individual-savings-accounts/overview

RichCowell

xylophone wrote: »

If your friend were to set up a JISA for his child, you could contribute- you might just set up a standing order to the
JISA from your own bank account for a certain amount each month?

Thanks for that - I should have mentioned in the OP that I was hoping to do it without letting them know... So it'd be a surprise when he's older... (Hoping his mum doesn't check here!)

xylophone

http://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html

You would need to check whether you would be allowed to open an account in bare trust for a child not your own.

There are also identity checks and documentation etc to consider.

You might wish to consider a stock market based plan held in bare trust.

http://www.sit.co.uk/private-investors/products/stockplan-a-flying-start

http://www.bailliegifford.com/individual-investor/help-and-information/frequently-asked-questions/csp-q-and-a.aspx

Again the identity checks/documentation etc need to be considered.

In your position I'd go the JISA route.